$154,120: Minimum income needed to afford median-priced OC SFR (Fontana, Fullerton: lender, townhouse)

[ysr_racer]

Originally Posted by taimaishu

What about Ethiopian Jews? Or does it only apply to European Jews?

Beats me, I immigrated here from Chicago.

[Electrician4you]

Originally Posted by Hyperiongapz

According to economic theory it is an opportunity cost (expense). If you are managing your properties you cant be doing something else.

As an extreme example lets say you're a brain surgeon making 1,000 bucks an hour and to manage a property takes 5 hours per month on average to manage. Property management company charges 500 bucks per month to manage. Which is the profit optimized choice in this scenario?

Now for you, the economics are different and you are probably more skilled at home repair than the brain surgeon so you have a different outcome. However, the property management expense still exists.

Ok but he's not making $1000 a hour 24 hrs a day. Either way you're talking about extreme examples. I guarantee you most LL do not make $1000 a hour at a regular job. In my out of state scenario I was simply relying on someone to do it for me. The costs kept piling up and my returns kept dropping. I was not slumming or refusing to have the work done. But properties that were great when I left were always in need of repairs. When they dropped to a certain ROI I didn't like I pulled out.

For the most part barring a emergency call it's relatively passive. Sure I may have to go to a inspection or replace some batteries in a detector or fix something. I'm not the type who is going to go nuts checking on a tenant monthly. I have great tenants. The few times a year I go and actually inspect, combined with the once in a while repair gives me a good idea of the tenants I have.
There is the occasional turn over which I really don't get often anymore. I do have one coming up but the tenant is moving because her work relocated her to San Diego. And the drive is too much from OC. Otherwise she said she would of stayed.
So I'll have a few busy weekends and screen some applicants. Most of that is done after work or weekends. Where I'm not getting paid. In return for a few weeks of work I get a lot of monthly cash flow. I'll "lose" a few hundred bucks taking time out of my schedule for the returns. Just to give you a idea if I hired a PMC here I would lose quite a bit of money to a PMC n management fees. No reason to.


Here is my take. I was poor. Like we had no indoor plumbing till I was about 5-6 and we had a well and outhouse poor. We didn't hetva tv till I was about 9. Black and white two channels. Being poor sucks. When I came to the States, I had every opportunity that anyone here has. I chose to learn the language and embrace what this country had to offer.
When I hear people say they can't get a fair chance it's bs. People make stupid personal and financial decisions. You can cry in your beer or get off your ass. Your choice (not you you but general you)

[HB2HSV]

Originally Posted by ihatedcu

My in-laws own 7 rental properties. Why? Real estate is the only game that doesn't care about the color of your skin. The only way to break through the glass ceiling is self employment and real estate. Look where real estate is on fire and your likely see high immigrant population. Asians aren't stupid, copy the Jewish playbook.

Amen to that! My fishing buddy's in-laws were WW-II concentration camp survival Jews. After they came to the US, they ran a little Pharmacy store in Santa Monica and poured every savings into Real Estate. They owned many properties in the SM, WLA, area. They, their children , and grandchildren are set for life.

As long as you're working for someone, they're dictating your salary. Real estate in the right market such as SoCal is a great way to grow your investments because of the demands.

[OpenRider]

Originally Posted by HB2HSV

Amen to that! My fishing buddy's in-laws were WW-II concentration camp survival Jews. After they came to the US, they ran a little Pharmacy store in Santa Monica and poured every savings into Real Estate. They owned many properties in the SM, WLA, area. They, their children , and grandchildren are set for life. As long as you're working for someone, they're dictating your salary. Real estate in the right market such as SoCal is a great way to grow your investments because of the demands.

Nice. Timing is everything. I have a direct relative who moved to Santa Monica from another state in 1950 with very little money. They were school teachers but she and her husband worked their tails off with extra jobs, saved money any way they could (said they really scrimped at times early on) and started buying small real estate properties.

Gradually moved up in the price ranges and later bought two small apartment buildings there. Moved to Pacific Palisades and then up on a hill in Malibu with a great view. But still re-invested in more real estate along the way. Eventually grabbing a house on Broad Beach which they rented out for a number of years. Everything was sold later, her husband died, and she moved out of the area. But had accumulated quite a bit of savings. They sure got into the area at the right time.

[Electrician4you]

Originally Posted by BlueRacer

Nice. Timing is everything. I have a direct relative who moved to Santa Monica from another state in 1950 with very little money. They were school teachers but she and her husband worked their tails off with extra jobs, saved money any way they could (said they really scrimped at times early on) and started buying small real estate properties.

Gradually moved up in the price ranges and later bought two small apartment buildings there. Moved to Pacific Palisades and then up on a hill in Malibu with a great view. But still re-invested in more real estate along the way. Eventually grabbing a house on Broad Beach which they rented out for a number of years. Everything was sold later, her husband died, and she moved out of the area. But had accumulated quite a bit of savings. They sure got into the area at the right time.

And timing is a factor. What's funny is I remember when 09-12 crash was going on. Some people weren't buying houses because the market was bad. I heard those comments a few times. The smart people were snapping up houses like crazy.
I doubt there will be such crash again for a long long time. And if there is the banks and Wall St already figured out what to do. The last bubble pop was a great learning tool.

[ysr_racer]

When the stock market crashed, and people were bailing out, I was buying in. Everything was on sale

You have to look at investments/real estate as long term, unless you're a gambler (flipper).

[Electrician4you]

Originally Posted by ysr_racer

When the stock market crashed, and people were bailing out, I was buying in. Everything was on sale

You have to look at investments/real estate as long term, unless you're a gambler (flipper).

Exactly.

[Perma Bear]

Originally Posted by HB2HSV

Amen to that! My fishing buddy's in-laws were WW-II concentration camp survival Jews. After they came to the US, they ran a little Pharmacy store in Santa Monica and poured every savings into Real Estate. They owned many properties in the SM, WLA, area. They, their children , and grandchildren are set for life.

As long as you're working for someone, they're dictating your salary. Real estate in the right market such as SoCal is a great way to grow your investments because of the demands.

What about the Jews who bought in Detroit? There's a lot survivorship bias here.

[LuvSouthOC]

Originally Posted by Perma Bear

What about the Jews who bought in Detroit? There's a lot survivorship bias here.

Hahaha, you must be joking. They are long since gone. Jews are far too smart on average to not have seen what was happening in Detroit. They fled long ago.

Lost Synagogues of Detroit - Home Page - Shtetlhood.com

[SportyandMisty]

Originally Posted by k374

untrue... I knew it was a bubble and predicted the last one quite accurately. I was one of the very few that was actually saying that it is unsustainable and will crash, people laughed in my face. Greed always blinds people and they will always believe what they want to believe.

It's quite easy to determine when we are in a bubble, what is extremely hard is predicting when it will burst and what will cause the bursting. The timing is impossible to predict otherwise I and many others would be billionaires.

There are no objective criteria to establish the existence of a current bubble.

There is no reliable, repeatable way to predict that a bubble will occur, when it would occur, how long it will last, when it will burst, etc.

People looking for bubbles are akin to people looking the clouds exclaiming, "Look! That one's a clown! And over there -- that one's a horse!"

If you really think you can predict one, please articulate the objective, repeatable mathematical formula.